L R AS Published on Saturday 10 September 2022 - n° 415 - Categories:Europe
European Commission proposes to impose a maximum price on renewable electricity
The European Commission is proposing to impose a maximum price on electricity from renewable energy sources. The aim is to cap wholesale electricity prices by distinguishing between low carbon and fossil fuel generators.
Ms Von der Leyen presented the revenue caps
for renewable and nuclear energy producers as the second of five measures to address the energy crisis. A similar measure for companies in the fossil fuel sector is labelled as the third measure.
The aim is to limit the selling price of renewable energy production because the cost of production is zero, while the energy is sold on the wholesale market at a high price. The Commission believes that this current high price differential is undue and should be taxed.
In the same spirit, a "solidarity contribution" would be imposed on fossil energy producers who profit from high energy prices on the wholesale market.
SolarPower Europe opposes these caps, as there are special cases in different countries: "Most solar farms in Germany do not earn the wholesale electricity price. (Editor's note: This seems to mean that in Germany the cost price is higher than the wholesale price)
The energy ministers of the EU Member States met on Friday 9 September to draw up emergency measures to protect consumers.
PV Magazine of 8 September 2022
Editor's note: Already illustrated by its decision to boycott Russian gas, which disrupted European supplies and created serious economic disruption, including rising energy prices, the European Commission has taken a number of measures to protect consumers.The President of the Commission is proposing a very curious formula: to limit the sale price of electricity from renewable energy sources on the free market. What if the market price of gas exceeds the ceiling price? What if the price fluctuates during the day around the ceiling price? Will the sale of electricity abroad be banned to avoid exceeding the price cap? Will a special police force be set up to track down selling prices above the price ceiling?
Clearly, the President of the Commission is no longer thinking straight.
